UK government closes tax loophole on digital media, could mean the end of the 99p song download

85 percent of the 14 billion videos downloaded last year were illegal

A new report from In-Stat indicates what we already suspected; because of the ridiculous DRM on digital downloads, most people are opting to obtain content illegally. Consumers will come up with just about any justification because the current offerings from Hollywood are just way too draconian to buy in to. For us that is good news and we can't wait for the video industry to follow the music's lead and give up on all of this overly complicated DRM, that really just doesn't work. Like us, In-Stat believes that watermarking will become the preferred way to control the distribution of digital content. It really is win-win because while consumers are free to use the content as they deem fit, it is very easy for Hollywood to catch up with them if they decide to share it with the whole world.